Quick Money

Wendy Rohrer

Summit Credit Union

Who uses payday loans?

• Lower to middle class households

• Household Income $25,000 - $50,000

• 40% own their own homes

• 57% have a bank credit card

Why people use payday loans

• Best way to meet an immediate need for cash between $100-$500

• May not have access to lower cost credit or they are already tapped out

• Convenient

• Anonymous

Why does Summit offer an alternative?

In order to live our mission of improving members’ financial power, we need to provide an alternative to

payday lending.

Quick Money March 2005

• $1500 line of credit

• 29.9% fixed

• Annual fee of $25.00

• Monthly payments of $75.00

• Automatic payments required

• Member for 90 days

• Direct deposit

Profitability Assumptions

• Projected portfolio size of $2.5 million

• Average loan size $1316

• Income from interest and fees

• Expenses – losses from charge-off, program expenses and marketing expenses

One Year Later – March 2006

• 773 Quick Money loans

• Average loan size is $1350

• 59% Female, 41% Male

• 58% in the 25-44 age range

• 84% have less than $1000 in deposit balances

Tightening the parameters

• $1000 line of credit

• 29.9% fixed

• Annual fee of $25.00

• Monthly payments of $75.00

• Automatic payments required

• Member for 1 year

• Direct Deposit

Where are we at today?

• 890 Quick Money loans

• Average loan size $1202

• Delinquency 11% - 60+

• Growth has slowed

Quick Money

While the Quick Money loan has proved to be a more affordable payday loan alternative for our

members, it has fallen short as far as helping members turn their lives

around.

Questions

Wendy Rohrer

Assistant Vice President Lending

Summit Credit Union

608-243-5000 ext 1226wendy.rohrer@summitcreditunion.com